MappedIn navigates the market for mobile retail experiences

A year after winning over all five judges on TV’s Dragon’s Den, indoor navigation startup MappedIn is still finding its way.

And co-founder and CEO Hongwei Liu is just fine with that.

“This is my first time doing this and every obstacle is kind of new,” admits the novice CEO, who’s 22.

Liu was studying electrical engineering in 2010 when he co-founded MappedIn with fellow University of Waterloo students Leander Lee and Mitchell Butler. MappedIn’s first flagship product is a shopping mall directory kiosk that uses interactive touch screens to help visitors find stores. (Kiosks can display ads and deal offers from retailers, too.) The MappedIn app brings the same experience to mobile devices. For a monthly subscription fee, retailers can collect analytics on store traffic, purchases and shopping trends from MappedIn app users.

“We don’t want to be a vendor of individual parts of products but the software guys building the solutions for indoor mapping in general,” says Liu.

Like many new companies, MappedIn has hit some speed bumps while charting a course to startup stability.

Last year, the Kitchener-Waterloo, Ont. firm pulled off a coup by persuading all five Dragon’s Den judges to offer up money. In fact, all five panelists offered Liu way more than the $150,000 he asked for. He accepted a combined $375,000 from three judges in exchange for a 25 per cent stake in MappedIn.

But off screen, the deal fell apart. To the Financial Post, dragon Bruce Croxon hinted at concerns about competition in the indoor navigation market. Liu’s team had its own concern: that MappedIn would get lost among the multiple priorities of the three dragons.

“I think both (sides) would like to say it’s a mutual decision,” Liu says. “It was a decision on our end to say ‘What’s the value outside of money that these guys can add?’ They’re extremely busy and that’s our analysis. We’re doing our best to stay in touch with the dragons. I’d love to work with them in the future.”

Next came Act Two of MappedIn’s TV fundraising drama. Liu made another presentation, this time on BNN’s The Pitch. Though Liu failed to win MappedIn an investment deal, a businessman watching the show emailed him to offer $200,000. Alas, that deal faltered, too. Liu says both brushes with the fame-and-fundraising TV game have helped MappedIn refine its priorities. Although the startup has raised $25,000 from the VeloCity Venture Fund, Liu says its priority isn’t the hunt for financing; instead, it’s executing on product development and service delivery targets.

“We’re very proud of the stuff we make and the hard lesson is that while it’s always tempting to chase new business, we have to make sure what we put out is gold,” Liu says.

MappedIn has a lot to focus on these days. It’s developing the next two updates of its mobile app. A potential partnership with one of Canada’s biggest digital signage companies is in the works. One of its newest clients is 10 Dundas East, an iconic Toronto retail complex across from the Eaton Centre that houses 15 stores and 25 eateries. And a pilot project with Forzani Group Ltd. (owner of the Sport Check chain) is set for a new 80,000 sq. ft. store opening at West Edmonton Mall in January.

Liu knows there are competitors offering similar pieces of the indoor navigation and retail puzzle, like YouRHere, Mobile Fringe, Qwick Media and Google Maps Indoors. He says MappedIn wants to set itself apart by providing an end-to-end solution – including software, kiosk hardware and mobile apps – that becomes the industry standard for indoor navigation.

“We want to be the technology company that builds these digital 3D mapping interfaces for (indoor) navigation,” Liu says. “We’re trying to build the entire thing, the entire system.”

MappedIn is trying to broaden its targeted client base to casinos, college and university campuses, conferences, hospitals and office buildings. It has completed 11 installations across Canada for clients such as the City of Waterloo, the University of Waterloo and the local Conestoga Mall. Liu’s goal is to hit 100 installations worldwide by the end of next year. It’s ambitious. And why not aim high? Liu now knows that when things go south, sometimes you can navigate towards something even better.

Case in point: earlier this year Esri Canada, a leading geographic information system provider, took a minority stake in MappedIn by investing $375,000 in the startup – the exact same amount that fell through in the Dragon’s Den deal.